If the incremental revenues for a joint product that has been processed further exceed the incremental costs, the general decision is to:
A) Process beyond the split-off point
B) Sell at the split-off point
C) Be indifferent about whether to process further
D) Allocate the separable costs using the net realizable value method

Question

Quizplus · Accepted Answer

If the incremental revenues from processing further exceed the incremental costs, it is more profitable to process beyond the split-off point as it will result in higher net income.

If the Incremental Revenues for a Joint Product That Has